Applied Marketing Strategy

Assignments 02.

NUST Business School

Course Tittle: Supply Chain Strategy

Submitted to;
Dr. Kashir Asghar

Submitted by;

Yousaf Haroon

MBA-2k18(B)

Date: 25th of October, 2019.

Applied Marketing Strategy

Contents
Red Bull ................................................................................................................................................... 3
Introduction………………………………………………………………………………………………………………………………………3

History & Background ............................................................................................................................. 3

S.W.O.T Analysis ..................................................................................................................................... 4
Strengths ............................................................................................................................................. 4
Weaknesses .................................................................................................................................... 4
SLEPT Analysis ......................................................................................................................................... 6
Political & Legal ................................................................................................................................... 6
Economic ........................................................................................................ 6Cultural Dimensions
........................................................................................................................................................ 7
Boston Consulting Group Matrix (Red Bull) ............................................................................................ 8
Cash cow ............................................................................................................................................. 8
Star .................................................................................................................................................. 8
Red Bull’s ANSOFF Matrix Analysis ......................................................................................................... 8
Standardization vs Adaptation ................................................................................................................ 9
Product Life Cycle.................................................................................................................................... 9
Red Bull (PLC) ...................................................................................................................................... 9
Geert Hofstede’s Cultural Dimensions.................................................................................................. 11
Africa & Middle East ............................................................................................................................. 11
South America ............................................................................................................................... 11
Red Bull Existing Modes of International Market Entry ....................................................................... 13
Promotion & Distribution ..................................................................................................................... 13
Conclusion ............................................................................................................................................. 14
Appendix ............................................................................................................................................... 15
Swot Analysis Red Bull (Appendix – 1) .............................................................................................. 15
Pest Analysis Red Bull (Appendix – 2) ........................................................................................... 16
References ............................................................................................................................................ 28
Applied Marketing Strategy

Red Bull

Introduction
This report has been undertaken as part of the continuous assessment for Applied Marketing
Strategy module. The report consists of answers to a series of questions about the global
expansion strategies of red bull. We shall take an in depth look at the company’s SWOT,
PESTEL, Marketing, BCG matrix and Ansoff’s Matrix to explain whether Red bull can
achieve the appropriate global expansion that it wants.

History & Background

This outpour in the energy drink market that has enveloped the active youth of this generation
has been made possible thanks to an ambitious man called Dietrich Mateschitz who
discovered, modified and introduced the world-famous drink, Red Bull. In 1982 while
sipping a famous local health tonic at a bar in Hong Kong, Mateschitz had a vision of
introducing an Asian drink in the western countries. After a couple of years, he teamed up
with an Asian business man called Chaleo Yoovidhya and came up with a carbonated version
of that tonic canned in a silver and blue container with a logo showing two bulls charging at
each other head on, hence the brand was named Red Bull. The drink was officially launched
in 1987 and later in 1992 it started going international. Currently Red Bull is being sold in
over a 100 countries, energizing people and inspiring competition in every region they touch.
With over 1 billion cans sold per annum Red Bull dominates the energy drinks market with a
70% market share.
However, in recent years Red Bull has confronted many challenges in terms of the growing
competition in the industry and the perception built by some groups about energy drinks that
they are harmful for health and adolescent behaviour and use of materials that are not good
for human health in terms of long term consumption.
Applied Marketing Strategy

SWOT analysis (see appendix -1) has been used to outline the strengths, weaknesses,
opportunities and threats facing the company and PESTLE analysis is used to analyse the
political, economic, social, technological, legal and environmental aspects affecting the
business.

S.W.O.T Analysis
Strengths
 Having the first mover advantage in the energy drink industry Red Bull had a status
and standing within the industry, popularised in the western markets, today Red Bull
brand is a famous drink for energizing in the cognition of its customers.
 Red Bull although best known for its energy drinks, is highly diversified and has set
its roots in many other industries such as motor racing, football, lifestyle magazines
and celebrity gossips. Recently Red Bull has ventured into the mobile phone service
operations in a few countries such as South Africa, Poland, Hungary and Austria
(Tech Radar, 2009)
 Its global outreach has been its main competitive advantage that its available in
almost 166 countries to be precise and that is what makes it a recognizable product
and easy to recall and associate another point to note here is that due to its packaging
being similar in every country it’s is immediately recognized by customers going
abroad, it’s like they associate to that product from their home town.
 Mateschitz’s entrepreneurial marketing approach has been identified as a strength for
the company’s image and brand generation. By sponsoring sports events, the
company has ensured that Red Bull reaches a large audience in the most effective way
possible as television ads are not as captivating as the non-traditional marketing
techniques. Sponsorships is a key brand management activity (Farelly, Quester and
Burton, 2006).
Weaknesses
 In the more conventional soft drink market, Red Bull is not faring that well, market
share is dominated by Pepsi co. 10.7% and coca cola company 25% (Euromonitor,
2007).
 Strong brand name coupled with boundless and robust distribution network of both
Coca Cola and Pepsi has been the main barrier for Red Bull to claim its share in the
soft drinks market.
 The energy drink market has skyrocketed in the recent years and consumption has
grown on an average of 10% since 2004. These figures clearly define the energy
drinks market as a bull market, thus attracting many new companies to emerge and
pose a challenge for Red Bull.
 Red Bull was at snail’s pace responding to its competitor’s strategies, Monster a key
competitor has always offered a variety of flavours to consumers, the energy drink
caters to a small category, it is vulnerable to market fluctuations.
 Red Bull’s major constraint has been its limited capacity to produce, reason being that
Red Bull’s production facilities do not go beyond the Austrian borders, the company
must expand its production facilities in other countries as well as it will increase their
capacity to produce and will also reduce shipping costs in exporting and distributing
its products (Stevenson and Hojati, 2007).
Applied Marketing Strategy

 Harmful effects on health as the ingredients it contains are not suitable for long term
use.
Opportunities
 Red Bull can diversify their modes of retail by installing vending machines in various
locations where their target audience is in abundance, like schools, colleges and
universities or gyms.
 It may take time for the brand to build its identity in the Asian pacific region as there
are still countries remaining that needs to be explored an opportunity for global
growth seems to be available for the energy drink market.
 Growing population in China depicts that in the near future the Chinese market will
be the market leader in terms of sales volume, according to stats 47.84% of the people
in China fall between the age of 25 – 54 years, which means that there is a lot of
potential for Red Bull as at this age the people are going through strenuous work
either in their education or their jobs so they need to stay active (CIA Library).
 Red Bull’s rigidity to stay on the original course of only going with two variants of
the product has been its key weakness relative to its competitors,
 if this diversifying technique is successful then it could offer greater opportunities for
growth in the future.
 Chinese known for their keen interest in sports pose an opportunity for Red Bull to
build their brand by sponsoring sports events such as badminton, table tennis and
gymnastics.
Threats
 Red Bull is the provocateur of the energy drinks concept, it was a unique concept and
seeing its growing popularity has attracted the attention of many of its competitor to
venture into the energy drinks market such as Coca Cola that acquired 16.7% stakes
in the Monster beverage (Fortune Magazine, 2008).
 Coca Cola and Monster have already capitalised on their vast distribution network to
maximize the reach of their products. Monster has now surpassed Red Bull in terms
of sales volume due to its massive presence in the market (Euromonitor, 2007).
 Due to the discovery of the negative impact of functional drinks on the health of
consumers, governments in certain countries like France and Denmark have banned
the sale and purchase of Red bull and other energy drinks.
 In the recent years’ people in the west have become very health conscious and this is
posing a threat to Red Bull and many other companies as Red Bull is packed with
sugar and an ingredient that has come under scrutiny for growing the obesity rate in
the west (Clauson, Shield, McQueen and Persad, 2008).
 There has been a rumour among consumers that one of the ingredients used in red bull
comes from a bull’s testicle.
Applied Marketing Strategy

SLEPT Analysis
Red Bull’s SLEPT analysis (see appendix – 2) ranks factors in the business environment. The
five factor are assessed on a scale of 1 – 5, were I is the most important aspect and 5 Is the
least important aspect.

Political & Legal

Governments has started to take a keen interest in these energy drink companies due to the
increasing health concerns. USA has started to ban red bull sales in schools due to the rise in
type II diabetes among students (Babu, Church and Lewander, 2008). A growing lobby is
even trying hard to make sure that Red Bull and other energy drinks of sorts be also banned
in universities.
In response to these growing concerns by many groups, Red Bull introduced slimmer cans to
use less aluminium (Marketing Magazine, 2003) and initiated a recycling routine through
their website (Red bull, 2008).
Economic
Significant increase in the global output due to technological advancements in emerging
markets such as Asia and Latin America has led to a positive outlook towards the economy
despite the recession that passed recently (World Bank, 2008), this ensures that peoples
incomes are rising gradually which is a good news for Red Bull in terms of increasing
demand. However Red Bull needs to consider adopting a more diverse pricing strategy that
accounts for the income disparities between different markets (Euromonitor, 2007).

Social
Due to its possible toxic effects on juvenile and adult health, Red Bull has been under
scrutiny by many green groups since its inception, furthermore Red Bull’s marketing strategy
is such that they are targeting the young generation by sponsoring sports events which is
increasing their popularity amongst the young generation and the communities in general are
concerned over the health issues associated with these energy drinks that are harmful if
consumed in excess.
Technological
Red Bull is lacking behind its competitors in terms of variety as companies like Monster, they
are offering many variants of their energy drinks to choose from and that can be beneficial as
it helps target different people with different preferences. Red Bull needs to come out of its
shell and be more innovative and come up with strategies to counter its competition by
introducing more offerings to the market (Euromonitor, 2007). Red bull needs to focus on its
product formulation and packaging as it is a key characteristic of the energy drink industry.
Applied Marketing Strategy

Cultural Dimensions
Selling in a domestic market is much different to selling your product to an international
market as there are some elements like cultural elements that needs to be considered before
entering that market, every culture has separate beliefs, behaviours, norms and values that
need to be respected when a company decides to go for global expansion.
Hofstede model is widely used to determine the challenges faced by firms in non-domestic
countries they wish to penetrate. Red bull is known to set foot in markets where there is High
individualism, stronger masculinity, low power distance, high level of uncertainty avoidance
and short term orientation.
Applied Marketing Strategy

Boston Consulting Group Matrix (Red Bull)

BCG matrix (see appendix -3) is a tool used to portray the relationship between the market
share and the market growth of a company. It is used to show the current position of the
company in different regions across the globe as compared to their competitor’s position.
Cash cow
Red Bull commands a strong hold in North America and the Eastern Europe, due to which it
is a cash cow in these regions the markets in these regions have matured and due to the
availability of its competitors the consumers of these regions make an informed decision
regarding their consumption and since Red Bull has the first mover advantage so it has
acquired the maximum share in market.
Star
Stars are always profitable having high growth and high market share, Red bull is a star in
New Zealand, Middle East, Africa and Australia commanding a market share of 22.7% in!
Middle East and Africa where as 13.6% in New Zealand and Australia. It requires huge
capital investments for a company to remain market leaders one which Red Bull is very much
capable of.
Question Mark
In regions like Latin America and Asia the market share is 2.8% however due to the ever-
growing population in Asia (Euromonitor International,2007), this market poses an
opportunity for Red Bull in the future currently red bull does not fit in well in these regions as
the market is still in its growth stage and consumers need a lot of awareness regarding the
consumption of energy drinks.

Red Bull’s ANSOFF Matrix Analysis

Ansoff matrix (see appendix – 5) is used to determine the future potential of a company in
managing its products in relation to its markets (Carter and Lee, 2009). Red bull currently
faces the challenge of a narrow product line as compared to its competitors that is why
considering the previous analysis that we discovered in this report through SWOT and Pest
analysis, Red Bull should go for a diversification strategy (Data Monitor, 2004). Since Red
Bull was launched in the 90’s their current target market is now approaching maturity hence
Red Bull needs to look for other potential markets where there is a large population of youth
available (Yaqoob, 2008). Recently in the developing economies people are experiencing
improvement in living of standards and a growing income that’s why they are more inclined
towards purchasing premium products (Ecomonitor International, 2007). People in the
developed markets have become more health conscious these days that is why the market
over there has reached maturity and they are more concerned about the adverse effects of
consuming energy drinks however in the developed markets as the economy is growing
people are starting to raise their standards of living and by copying the people from
developed economies they are adopting their habits from the yesteryears and are more into
the consumption of energy drinks and other items that were once a fad in the developed
economies (Data Monitor, 2004).
Applied Marketing Strategy

Standardization vs Adaptation
Red bull has a standardized approach (see appendix – 6) towards its product mix as they
produce and distribute their products from a single facility in Austria (Red Bull). There are
many plus points to a standardized approach as it provides economies of scale in terms of
production, distribution and marketing of the product. However, it has some drawbacks in
today’s day and age as people of different cultures want products according to their tastes and
preferences and due to some legal concerns as well, standardization is not an optimal
approach. In case of a global expansion a company needs to have the capability to adapt to
the country it wishes to expand in.
Red Bull needs to follow the adaptation strategy (see appendix – 6), when expanding globally
the company needs to consider the tastes and references of the people of that country and then
if required, come up with different variants of the product that offer an affiliation to the
consumers with the product. Apart from that there are many legal concerns that Red Bull
needs to consider while expanding abroad for example, in France and Denmark red bull was
banned because it contained an ingredient called taurine which was banned in these countries
because it was known to have adverse health effects. Other than that, companies need to
consider the cultural differences of every region and then accordingly offer products to
capture more market share.

Product Life Cycle

The life span of a product is mapped using the product life cycle, it basically shows the
period over which the product is first introduced to the market and how it slowly and
gradually moves through the cycle, its growth stage its maturity and later on the decline of
the product, some companies are brave enough to give their product a redesign and start a
new life cycle for the product. Quoting an example from the case study, Lucozade was
basically a health tonic and was shelved in pharmacies however it had reached its decline
stage quickly, the company decided to revamp the product, change its packaging and
formulation and introduce it to a completely different segment. Hence Lucozade was
launched as an energy drink with revised packaging created to appeal its new target segment
and once again the product entered a new life cycle and was positively received in the
market.
Red Bull (PLC)
1. Introduction: launched in 1987, at this stage there was a requirement for heavy
promotional activity to create awareness among the competitors about the existence of
energy drinks in the market and secondly creating the need of the customer regarding
the consumption of energy drinks. The distribution of Red Bull was scattered at the
initial stage as key locations were selected where the company was sure that
maximum reach will be attained, for example selected areas were identified such as
bars, university cafeterias and sport events, where the company was trying to make
sure that they target the right segment.
Applied Marketing Strategy

2. Growth: At this stage, Red Bull increased their distribution network to cope with the
increasing demand of their product. Along with increasing their distribution channels
they also globally expanded their offerings because Austria wasn’t enough to satisfy
the vision of the founder in terms of the growth of Red Bull.
3. Maturity: Maturity for Red Bull began in the late 90’s to early 2000s’, their product
was well known across the globe along with that they were increasing their
distribution network and coming up with new versions of Red Bull like the sugar free
version. Red bull is still in its maturity stage as they keep on reinventing their product
and their presence is very significant in terms of sponsoring sport related events and
endorsing celebrities.
Applied Marketing Strategy

Geert Hofstede’s Cultural Dimensions

Africa & Middle East

Most of the countries in the Africa and Middle East, have high power distance
which is not a favourable element for red bull as majority of the population lies
below the poverty line, sales would be affected because only a particular
segment would be able to afford Red Bull. To cater this element Red Bull can
introduce versions of Red Bull that can be priced low. Majority of the decision
in these regions are made by one person, mostly the head of the family and he is
the person that is the sole bread winner in the family so any buying decision
regarding any product is one person’s role in the family, this is a tough situation
to deal with since the low income population cannot afford Red Bull in the first
place secondly the person in charge of the finances would not allow expenditure
on such premium products that’s why price diversification is crucial for Red
Bull if it wants to be successful in these regions. The countries in these regions
are mostly developed economies hence they are very short term oriented they
believe in immediate gratification and living in the present rather than saving up
and thinking about the future, for this very reason their economy is not able to
grow stronger and hence might not be fruitful economies for Red Bull to expect
high market share or growth from. In the middle east, the elite class is also
substantially large in number hence there is suitability for Red Bull to
aggressively market their products (cia.gov).
South America
South America relies mostly on its agricultural prowess, only few countries such as Brazil,
Argentina, Chile, Colombia, Venezuela and Uruguay are the most industrialized countries
responsible for more than 75% of the region’s economy. In this continent, mostly people are
Hispanics and Spanish is the most spoken language around. There is a large economic gap
between the rich and the poor only 10 percent of the rich have a hold of 40 percent of the
economy, whereas the rest of the 90 percent population has the rest of the economy divided
country wise (Wikipedia). The gap can be clearly seen by the standard of living in different
regions, naturally when people are forced to live in the slums their priority would not be to
consume premium products such as red bull their priority would be to survive and provide
food and shelter to their families. Individuality is quite low in this region, however there is
high indulgence among the population as people have the authority to choose what they want
for themselves so it might be an opportunity for Red Bull to market their product to the
young and active generation, they can sponsor education of these individuals as well as sport
events, this market has potential that needs to be explored. Red Bull needs to work on the
grass root level in order to build brand loyalty as this region is quite risk averse and they are
not into trying new things without proper research so in order to increase their market share
they need to make the perception in the minds of the people that Red Bull is the brand of this
region and is a local product.
Applied Marketing Strategy

Eastern Europe & Western Europe

European countries have more male dominated cultures. Thus, we can say that masculinity is
quite high in this continent, as an example during recession women are the first ones to be
laid off and overall women have the most unemployment rate in this continent (Grapard,
1997). As far as the wealth distribution goes, it is fairly balanced as the parity between the
rich and the poor is not that much, there are the elite class and then the middle or the middle
upper class. European regions are mostly individualistic societies, so the purchasing decisions
are increased as the decision making comes down to many peoples unlike in collectivist
societies where the decision of many people lie in the hands of a handful of people. Red Bull
has a favourable situation in this region. They can expect increased sales volume in this
continent as the buying power of individuals is strong. Since European countries are
considered as developed economies therefore they are well aware and well informed, they are
concerned about the adverse effects of products on their health that’s one of the reasons Red
Bull was banned in France and Denmark for it contained taurine in its ingredients. So for Red
Bull it is a challenge to make sure that they are vigilant in terms of their product offerings in
a more well informed region. The origin of Red Bull came from the European region,
Austria, so for the people of Europe there is a strong affiliation with the product as it is
considered as a local product one that represents their culture
North America
This continent consists of countries such as the United States of America, Canada, Mexico,
Trinidad and el Salvador, among which Mexico, Trinidad and el Salvador are countries that
are high in power distance, low in individualism and short term oriented, this is because these
countries have ongoing economic concerns, like low wages, under employment and unequal
distribution of wealth (cia.gov). on the flip side the countries like USA and Canada are
markets that are flourishing economically and have balanced power distance as well as high
individualism and high indulgence from the people on terms of purchase decisions.
Asia
Asian countries were the sleeping tigers of the past however as time goes by some of the
countries like China, Japan, India, Singapore, Turkey and Malaysia are now in the race with
developed economies and are aiming towards becoming developed economies, in Asia there
is a mixed array of life styles culture and behaviours as Asia is a very culturally rich market
and culture of every country needs to considered with great care for example in some of the
Asian countries you can use one ingredient but in other countries of the same continent that
might not be possible and may create an uproar or bad publicity for the product, their
advertising strategy needs to be diversified as some things you cannot culturally show in
some of the countries like for example in Pakistan you cannot show uncovered ladies on your
ads.
Applied Marketing Strategy

Red Bull Existing Modes of International Market Entry

As per the Uppsala model (see appendix – 7), red bull is following the stages model in which
a company first establishes the market within the origin country with zero exports and later
on the next stage they create joint ventures with distributors in foreign countries, ultimately
opening up production facilities in foreign countries (carter and lee, 2009).
Red Bull how ever has not completely followed this model step by step, they started with the
domestic market and later on expanded to foreign markets but still keeping their production
centralized to Austria (RedBull.com).
On the corporate level, Red Bull follows the multi-level marketing approach, in which they
sell their products through local distributors and hire students and local brand ambassadors to
promote their product to various target markets that Red Bull wants to capture.
Red Bull has strategic alliances in other countries and they have subsidiaries that import
products directly from red bull Austria. Red Bull’s strategic alliance partner Cadbury
Schweppes Australia helps distribute their products through traditional modes as well as
vending machines.

Promotion & Distribution

Before entering international markets, Red Bull should consider what kind of process it needs
to follow and for that Red bull needs to understand that government support is the key factor
in having a successful expansion in foreign countries. Governments are known to have high
bargaining power they can ease your entry into the market or make it difficult for you by
imposing taxes, laws and regulations. As we have read earlier in the case that Red Bull was
banned in France and Denmark, so in order to avoid such legal complications Red Bull needs
to get the government on board of its activities. Another mode of entry for Red Bull could be
to set up joint ventures with firms in the host country, this will ensure that the distribution of
the product is handled professionally and effectively as the local distributors will be more
aware of their market dynamics and will better be able to conduct business along with that
this will be less risky for Red Bull as well as they would avoid risky expensive investment in
unknown turfs. Furthermore, Red Bull can also introduce multi-level marketing just like it
did in other countries, they can hire students from universities and assign them the task to
promote Red Bull in various events or parties. They can also install chillers at retail outlets
for free where only their product will be kept for sale offering such incentives will increase
their saleability.
Red Bull is known for sponsoring sporting events in order to promote their own product.
They have spent almost $600 million in marketing that is 30 percent of their revenue (Dolan,
2005). Red Bull uses cartoons to advertise their products and these ads contain the element of
humour that is appealing to the audience.
Applied Marketing Strategy

Conclusion
Red Bull is a brand well known across the globe for being the first ones to introduce energy
drinks to the market. They have expanded globally and channelized their sales across all
regions and are exploring new opportunities. Its culture represents the type of market it aims
to target. A market that is individualistic, masculine and active.
As time goes by more and more competitors enter the market and offer products that are
better and more in line with the taste and preferences of the existing products, when a new
competitor enters it aims to fill the gap created by the deficiencies of the existing product,
hence Red Bull needs to be on its toes and offer products tailored to the preferences of the
market they wish to enter. Red bull can start joint ventures in other regions to reduce costs
and to distribute its products effectively.
Red bull should be wary of all sorts of complications face by companies during global
expansion such as legal concerns or concerns of the customers over the type of ingredients
being used in the product. The pricing strategy of the company plays an important role in the
successful expansion of a company, as purchasing power vary from region to region so the
company needs to have the capability to adapt to the requirements of the host countries.
 Applied Marketing Strategy

Appendix
Swot Analysis Red Bull (Appendix – 1)
STRENGTHS
Factors Relative Importance Weightage R*W
First Mover Advantage 2 0.3 0.6
Global Outreach 2 0.3 0.6
Diversified business model 3 0.25 0.75
Entrepreneurial Marketing 3 0.15 0.45
2.4

WEAKNESS
Factors Relative Importance Weightage R*W
Less Diversity in Portfolio 2 0.3 0.6
Limited Capacity to Produce 3 0.2 0.6
Strong Competitor Distribution Network 2 0.2 0.4
Unhealthy 4 0.2 0.8
Growing Competition 3 0.1 0.3
2.7

OPPORTUNITIES
Factors Relative Importance Weightage R*W
Up Coming Chinese Market 3 0.2 0.6
Decreased Transportation Cost, Increased Profits 2 0.2 0.4
Introducing New Flavours 3 0.1 0.3
New Modes of Retail 2 0.2 0.4
Un-explored Countries In Asian Pacific 2 0.3 0.6
2.3

THREATS
Factors Relative Importance Weightage R*W
Consumers Becoming Health Conscious 2 0.2 0.4
Strong Distribution Network Of Competitors 3 0.2 0.6
Rumour like Ingredients from Bulls' Testicles 3 0.1 0.3
Ban by Government 2 0.3 0.6
Challenges by soft drink brands entering the energy drink market 2 0.2 0.4
2.3
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SLEPT Analysis Red Bull (Appendix – 2)

1 - Very Important - 5- Importance x

Factors unimportant Weightage Weightage

Political & Legal 1 0.35 0.35

Economic 2 0.15 0.45

Social 3 0.25 0.75

Technological 4 0.25 1

Total 2.55
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BCG Matrix Red Bull (Appendix – 3)

High Stars Question Marks

Africa / Middle East

Asia

Latin America

Australia / Newzealand
Market
Cash Cows Dogs
Growth
Western Europe

North America

Low Eastern Europe

High Market Share Low

Red Bull Market Share (Appendix – 4)

Red Bull Market Share In Functional Drink
Region Market %
Asia 2.8
Latin America 11.7
Africa / Middle East 22.7
Western Europe 26.8
North America 10
Eastern Europe 31.4
Australia / New
Zealand 13.6
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Red Bull’s Ansoff Matrix (Appendix – 5)

Existing Products New Products
Existing Markets

Market Product
Penetration Development
Existing Markets

Market
Diversification
Development
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Standardization Vs Adaptation (Appendix – 6)
Standardization
 Economies of scale, low
production costs as the product
design is same.
 Low marketing costs as
throughout the world same ad
can be used in every region
 Easy to produce and distribute.
Adaptation
 Matching customer preferences
 Cultural differences are
considered
 Rules and regulations are being
followed in every region.
 Addresses the ethical or religious
concerns of the people of
different regions
 Without adapting a lot of market
share can be lost to competitors
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Market Entry Strategy (Appendix – 7)

Process of Internationalization
Theoretical Bargaining
Stages Model Networks Born Global
Approach Power

International Business Model

Multi-Level
Subscription Network Effect
Corporate Marketing
Level Razor and Blade Monopoly Auction
Disintermediation Click and Mortar Loyalty Business

Market Entry Modes

Direct and
Country or Indirect Joint Venture Franchise
Market Level Exporting
Acquisition and
Strategic Alliance FDI
Merger
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Geert Hofstede (Appendix – 8)

CT Power Individ Mascu Uncertainty Long Indulg Contine
R COUNTRY Distance ualism linity avoidance term ence nt
AF
E Africa East 64 27 41 52 32 40 Africa
AF
W Africa West 77 20 46 54 9 78 Africa
A
R Arab
A countries 80 38 53 68 23 34 Africa
M
O
R Morocco 70 46 53 68 14 25 Africa

U
R South
U Uruguay 61 36 38 100 26 53 America
VE South
N Venezuela 81 12 73 76 16 100 America
PE South
R Peru 64 16 42 87 25 46 America
C South
HL Chile 63 23 28 86 31 68 America
A
R South
G Argentina 49 46 56 86 20 62 America
C South
OL Colombia 67 13 64 80 13 83 America

C
R Eastern
O Croatia 73 33 40 80 58 33 Europe
CZ Eastern
E Czech Rep 57 58 57 74 70 29 Europe
D
E Eastern
N Denmark 18 74 16 23 35 70 Europe
ES Eastern
T Estonia 40 60 30 60 82 16 Europe
FI Eastern
N Finland 33 63 26 59 38 57 Europe
G
R Eastern
E Greece 60 35 57 112 45 50 Europe
H
U Eastern
N Hungary 46 80 88 82 58 31 Europe
LA Eastern
T Latvia 44 70 9 63 69 13 Europe
LI Eastern
T Lithuania 42 60 19 65 82 16 Europe
P Eastern
OL Poland 68 60 64 93 38 29 Europe
R
O Eastern
M Romania 90 30 42 90 52 20 Europe
R
U Eastern
S Russia 93 39 36 95 81 20 Europe
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SE Eastern
R Serbia 86 25 43 92 52 28 Europe
N
O Eastern
R Norway 31 69 8 50 35 55 Europe
SL Eastern
K Slovak Rep 104 52 110 51 77 28 Europe
SL Eastern
V Slovenia 71 27 19 88 49 48 Europe
S
W Eastern
E Sweden 31 71 5 29 53 78 Europe

FR Western
A France 68 71 43 86 63 48 Europe
G
E Western
R Germany 35 67 66 65 83 40 Europe
G
B Great Western
R Britain 35 89 66 35 51 69 Europe
A Western
UT Austria 11 55 79 70 60 63 Europe
ES Western
T Belgium 65 75 54 94 82 57 Europe
IR Western
E Ireland 28 70 68 35 24 65 Europe
IT Western
A Italy 50 76 70 75 61 30 Europe
LU Luxembour Western
X g 40 60 50 70 64 56 Europe
ES Western
T Malta 56 59 47 96 47 66 Europe
P
O Western
R Portugal 63 27 31 104 28 33 Europe
N Netherland Western
ET s 38 80 14 53 67 68 Europe
SP Western
A Spain 57 51 42 86 48 44 Europe
SP Western
A Spain 57 51 42 86 48 44 Europe

SA North
L El Salvador 66 19 40 94 20 89 Americe
M North
EX Mexico 81 30 69 82 24 97 America
TR Trinidad North
I and Tobago 47 16 58 55 13 80 America
C
A North
N Canada 39 80 52 48 36 68 America
U North
SA U.S.A. 40 91 62 46 26 68 America

A
UL Australia 38 90 61 51 21 71 Oceania
NZ New
L Zealand 22 79 58 49 33 75 Oceania
Applied Marketing Strategy

VI
E Vietnam 70 20 40 30 57 35 Asia
TA
I Taiwan 58 17 45 69 93 49 Asia
TH
A Thailand 64 20 34 64 32 45 Asia
TU
R Turkey 66 37 45 85 46 49 Asia
SI
N Singapore 74 20 48 8 72 46 Asia
P
HI Philippines 94 32 64 44 27 42 Asia
PA
K Pakistan 55 14 50 70 50 0 Asia
M
AL Malaysia 104 26 50 36 41 57 Asia
JP
N Japan 54 46 95 92 88 42 Asia
K
O Korea
R South 60 18 39 85 100 29 Asia
IN
D India 77 48 56 40 51 26 Asia
ID
O Indonesia 78 14 46 48 62 38 Asia
IR
A Iran 58 41 43 59 14 40 Asia
H
O
K Hong Kong 68 25 57 29 61 17 Asia
C
HI China 80 20 66 30 87 24 Asia
BA
N Bangladesh 80 20 55 60 47 20 Asia

Africa
AFE Africa East AFW Africa West ARA Arab countries MOR Morocco

Power Distance
80
70
Continent 60 Individualism
50
40
30
20
10
0 Masculinity

Indulgence Uncertainty avoidance

Long term
Applied Marketing Strategy

South America
URU Uruguay VEN Venezuela PER Peru
CHL Chile ARG Argentina COL Colombia
Power Distance
100
80
Continent Individualism
60
40
20
0 Masculinity

Indulgence Uncertainty avoidance

Long term

Eastern Europe
CRO Croatia CZE Czech Rep DEN Denmark EST Estonia FIN Finland
GRE Greece HUN Hungary LAT Latvia LIT Lithuania POL Poland
ROM Romania RUS Russia SER Serbia NOR Norway SLK Slovak Rep
SLV Slovenia SWE Sweden
Power Distance
120
100
Continent Individualism
80
60
40
20
0 Masculinity

Indulgence Uncertainty avoidance

Long term
Applied Marketing Strategy

Eastern Europe
CRO Croatia CZE Czech Rep DEN Denmark EST Estonia FIN Finland
GRE Greece HUN Hungary LAT Latvia LIT Lithuania POL Poland
ROM Romania RUS Russia SER Serbia NOR Norway SLK Slovak Rep
SLV Slovenia SWE Sweden
Power Distance
120
100
Continent Individualism
80
60
40
20
0 Masculinity

Indulgence Uncertainty avoidance

Long term

Western Europe
FRA France GER Germany GBR Great Britain AUT Austria
EST Belgium IRE Ireland ITA Italy LUX Luxembourg
EST Malta POR Portugal NET Netherlands SPA Spain
SPA Spain
Power Distance
120
100
Continent Individualism
80
60
40
20
0 Masculinity

Indulgence Uncertainty avoidance

Long term
Applied Marketing Strategy

Oceania
AUL Australia NZL New Zealand

Power Distance
90
80
70
Continent Individualism
60
50
40
30
20
10
0 Masculinity

Indulgence Uncertainty avoidance

Long term

North America
SAL El Salvador MEX Mexico TRI Trinidad and Tobago CAN Canada USA U.S.A.
Power Distance
100
90
80
Continent Individualism
70
60
50
40
30
20
10
0 Masculinity

Indulgence Uncertainty avoidance

Long term
Applied Marketing Strategy

Asia
VIE Vietnam TAI Taiwan THA Thailand TUR Turkey
SIN Singapore PHI Philippines PAK Pakistan MAL Malaysia
JPN Japan KOR Korea South IND India IDO Indonesia
IRA Iran HOK Hong Kong CHI China BAN Bangladesh
Power Distance
120
100
Continent Individualism
80
60
40
20
0 Masculinity

Indulgence Uncertainty avoidance

Long term
Applied Marketing Strategy

References
 Euromonitor (2007). Red Bull GmbH in Soft Drinks (World). Brussels: Euromonitor
 Farrelly, F., Quester, P. & Burton, R. (2006). Changes in sponsorship value:
Competencies and capabilities of successful sponsorship relationships. Industrial
Marketing Management, 35(8), 1016-1026
 https://www.foodnavigator-usa.com/Sectors/Beverage?page=201
 http://www.thegrocer.co.uk/buying-and-supplying/categories/soft-drinks/red-bull-to-
expand-energy-drinks-range-with-three-fruit-flavours/232954.article
 Stevenson, W. J., & Hojati, M. (2007). Operations Management. Boston: McGraw-
Hill/Irwin.
 Zenith International (2013). Zenith 2013 Global Energy Drinks report. Bath: Zenith
International
 http://www.npr.org/2012/10/15/162963633/red-bulls-brand-as-powerful-as-its-
beverage
 Marc Chacksfield - http://www.techradar.com/news/phone-and-communications/mobile-
phones/red-bull-to-offer-mobile-phone-network-639957
 https://scholarspapers.com/red-bull-swot-analysis
 https://www.worldbank.org/en/publication/global-economic-prospects.
 https://www.cia.gov
 https://www.wikipedia.org/